Question : VIKAS SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April 2020. Land was donated by his grandfather worth Rs.10,00,000 as per his will. His father Shankar donated Rs.5,00,000 for the construction and running the academy. He spent Rs.3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid yearly subscription of Rs.1,200 each. 10 players paid in advance for the next year 2021-22. Vijayashankar appointed well experienced coach for them, the coach fee amounted to Rs.1,20,000 p.a. The maintenance expenses amounted to Rs.75,000. Bats and balls purchased during the year amounted to Rs.15,000. Closing stock of bats and ball amount to Rs.1,000. Based on the above information you are required to answer the following question. The amount of subscription to be credited to Income and Expenditure account:
Option 1: Rs.1,20,000
Option 2:
Rs.2,40,000
Option 3:
Rs.60,000
Option 4: Rs.72,000
Correct Answer:
Rs.2,40,000
Solution : Amount of subscription = Rs.1,200 X 200 = Rs.2,40,000. Hence, the correct option is 2.
